Nykaa to scale up beauty fashion businesses in next 3 years CEO Nayar

Falguni Nayar, Nykaa MD & CEO

The firm says it has leveraged its omnichannel model to successfully address the “total addressable market (TAM) in beauty and personal care, emerging as India’s foremost beauty category creator and market builder.”

Moreover, Nykaa aims to grow its fashion business by 2.5x-3x over the next three years, as it looks to become Ebitda positive in the near future.

The fashion business revenue grew by 27 per cent Y-o-Y to Rs 1,334 crore for the March quarter.

“Our conviction and efforts in beauty over the last decade is now reflected in a market bound to become a 90 billion-dollar market over the next 15 years, with Nykaa continuing its industry-leading growth. The results of our more recent investments in fashion and eB2B are reflected in the past year through the much-improved profitability in both businesses. Both are expected to continue to expand margins rapidly in the next two to three years, leading to a positive improvement in Nykaa’s consolidated margins,” said Falguni Nayar, executive chairperson, founder, and CEO, Nykaa.

Nykaa’s consumer brands business has scaled rapidly over the last four years, witnessing 47 per cent CAGR in the beauty consumer brands GMV and 112 per cent CAGR in the fashion consumer brands GMV over FY21-24.

One of its brands, Dot & Key, achieved an annualised GMV run rate of Rs 600 crore in Q4 FY24 and has been profitable since January 2023. Meanwhile, Nykd by Nykaa, which boasts a consumer base of 2 million, has achieved an annualised GMV run rate of over Rs 160 crore within three years.

The company recently launched its first Nykaa store in the Gulf Cooperation Council (GCC) market. The company plans to open five new stores this year and take this figure to 70 stores in five years.

Nykaa recently reported a 187 per cent year-on-year (Y-o-Y) increase in its net profit to Rs 6.9 crore, attributable to shareholders, for the fourth quarter ended March 31, compared to Rs 2.41 crore in the year-ago period.

The company had posted a profit of Rs 16.2 crore a quarter ago, according to regulatory filings.

The company’s consolidated revenue from operations grew 28 per cent Y-o-Y to Rs 1,668 crore, up from Rs 1,302 crore a year ago and Rs 1,789 crore in Q3 FY24.

For the entire financial year, the company reported a 68 per cent Y-o-Y growth in net profit at Rs 32.3 crore, from Rs 19.3 crore. Consolidated revenue from operations grew by 24.1 per cent to Rs 6,385.6 crore, from Rs 5,143.8 crore reported at the end of FY23.

First Published: Jun 14 2024 | 7:21 PM IST